The foreign exchange market, or forex, is a global marketplace where currencies are traded 24 hours a day, five days a week. However, there are specific times when the market is more active and volatile, and these are the times when traders can take advantage of price fluctuations and make profits.
The mid-market refers to the average price between the bid and ask prices of a currency pair. It is also known as the midpoint or the mid-price. The mid-market is an essential reference point for traders, as it provides a fair value for the currency pair and helps them determine the best time to buy or sell.
In the forex market, the mid-market closes at different times depending on the trading session and the location. The forex market is open 24 hours a day, but it is divided into four main trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its own opening and closing times, and they overlap with each other, creating periods of high trading activity and volatility.
The mid-market closes in the US and Canada at the end of the New York session, which is the most active and liquid trading session. The New York session starts at 8:00 AM EST and closes at 5:00 PM EST. During this time, traders from around the world trade the US dollar, which is the most traded currency in the forex market. The New York session is also when the European traders are still active, and their overlapping activity leads to increased volatility and trading opportunities.
The closing of the mid-market in the US and Canada signals the end of the trading day for many forex traders. It is the time when they close their positions or adjust their stop-loss and take-profit levels to protect their profits or limit their losses. The closure of the mid-market also means that the liquidity in the forex market will decrease, and the spreads between the bid and ask prices may widen, making it harder for traders to execute their trades at the desired price.
Traders in the US and Canada should be aware of the mid-market closing time and adjust their trading strategies accordingly. They should avoid opening new positions close to the closing time, as the market may become more volatile and unpredictable. They should also consider closing their positions before the mid-market closes to avoid the wider spreads and the reduced liquidity.
In conclusion, the mid-market closes in the US and Canada at the end of the New York session, which is the most active and liquid trading session in the forex market. Traders should be aware of this time and adjust their trading strategies accordingly to avoid the increased volatility and wider spreads. The forex market is a dynamic and ever-changing environment, and traders should always stay informed and up-to-date to succeed in this competitive industry.
